System and Method for Providing Secure Retirement Benefits Via a Conversion Process

ABSTRACT

A method for providing a person with a secured retirement program employs a computerized system to allocate assets owned by a person towards purchase of retirement benefits. The system selects at least one desired retirement benefit from a group of available retirement benefits. A user may specify a conversion period for allocating the assets to the selected benefits during this conversion period. The system allocates portions of the assets towards purchasing a fraction of the selected benefits at selected intervals within the conversion period. Thereafter, the system calculates benefit payments corresponding to the selected retirement benefits to the person during and after the conversion period, wherein the benefit payments during the conversion period is from contributions made from the assets and the purchased benefits, and the benefit payments after the conversion period are provided by the purchased benefits.

FIELD OF THE INVENTION

This invention relates generally to investments and insurance, andactuarial methods to secure retirement benefits, and, more particularly,to an Internet based computerized method for the conversion of personalassets into a personal retirement or monetary benefits program.

BACKGROUND OF THE INVENTION

To many, achieving a worry-free retirement is a dream that will mostlikely not materialize. Indeed, considering the high cost of living andtremendous foresight required to properly plan for retirement, manynever accumulate sufficient assets to provide for the income andbenefits they need or desire. According to the Employee Benefit'sResearch Institute's 1997 retirement confidence survey, of the peoplewho thought they could afford to retire, 30% report their standard ofliving is worse than at the end of their career and 36% are notconfident they will have enough to remain comfortable.

Currently, retirees and individuals investing for retirement have accessto a plurality of products that provide for the many financial and otherneeds that may arise. For example, equity mutual funds can providepotential for market appreciation, life annuities can offer retirees afixed annual income from a predetermined point until death; lifeinsurance can offer retirees a guaranteed death benefit as well as asecure cash value; long-term care agreements can offer retireesinsurance for certain health care benefits; home equity loans canprovide a source of cash, etc. Unfortunately, many still do not achievetheir retirement objectives due to the fact that they are overwhelmed bythe large selection of products and do not properly understand thefunctionality and purpose of the products they eventually purchase.Often, individuals do not fully understand the nature of risks involved,whether it be market risk or actuarial risk.

Moreover, aside from the often complex aspects of purchasing aninsurance or investment product, wherein many individuals end uppurchasing inappropriate products, even those who are fully informed andcorrectly match their current needs with the right product, frequentlyare not capable to cope with changes in life, where previously purchasedproducts are no longer satisfactory. Unfortunately, the currentlyoffered insurance products do not provide the flexibility to alter thepurchased benefits and income once the product has been purchased or‘locked’ in. Also, by locking in one's assets into a guaranteedinsurance product, clients lose out on the potentially higher yields ofthe stock market or other investment product. Meanwhile, whileinvestment products offer flexibility, they do not provide protectionagainst actuarial risks.

In addition, most guaranteed insurance products have the inherentcharacteristic of fulfilling a single fixed objective, such as alifetime income or a guaranteed death payment. As such, providers ofinsurance lack the ability and incentive to modify the arrangements tomeet the clients' needs once the product is sold and that single fixedobjective of the insurance achieved. Most people, on the other hand, donot have single fixed objectives and are thus ill suited for productsthat do not correspond to their need to adapt and change with time. Mostpeople also want flexibility without being forced to lock into aspecific product too soon.

Thus, what is needed is an integrated individual retirement system thatoffers the flexibility to change as needs change while moving to asecure retirement stage over time. This system should further addressthe confusing elements of insurance and actuarial products so thatindividuals can properly obtain a flexible benefit program that mostnearly satisfies their retirement objectives and changed circumstancesover time.

OBJECTS AND SUMMARY OF THE INVENTION

It is thus a general object of the present invention to provide a systemand method for the conversion of personal assets into an individualretirement benefit program.

In accordance with one object of the invention a retirement system isprovided, comprising a method for providing a person with desired securemonetary or retirement benefits. Initially, a client approaches thesystem of this invention with an identified portion of assets that areto be converted to a range of various retirement benefits, the amountsof which may be selected by the client as part of the process. Then aconversion period may be specified in which to convert the assets to thesecure monetary benefits.

Typically, an example of a personal asset accumulated over a period oftime may be a qualified asset such as an individual retirement account(IRA). A retiring individual who has accumulated funds in an IRA isfaced with the decision to purchase guaranteed life time benefits withthe entire assets in the account, and to forego market gains had thefunds in the account remained invested, or to take distributions fromthe market-invested IRA, which may run out or decrease rather thanincrease over time.

Other examples of a personal asset accumulated over a period of time maybe the home equity built by an individual who has lived in the sameresidence for a number of years. Again, a retiring individual who owns aresidence substantially free and clear has at its disposal a valuablereal estate asset that does not generate current cash flow and leftunattended will leave a significant inheritance for beneficiaries. Ahome equity loan requires the individual to pay monthly mortgagepayments which if not planned properly may lead to unnecessary financialburdens or even a forced move out, without any assurance of a lifetimebenefit.

Moreover, retirement plans of many individuals may be completelydevastated by the effects of illnesses that require long term care orsignificant medical costs that are not covered by Medicare.

The individual retirement system, in accordance with one embodiment ofthe invention, provides to actuarially matched, fungible, market valued,secure retirement benefits based on an initial conversion of assets,while allowing the person to control volatility during a time phasedconversion period. Thus, individuals can use the system of thisinvention to gradually convert personal assets into a personalretirement benefits program while dollar cost averaging out of theircurrent investment vehicles, which may be volatile from a market returnstandpoint or may be illiquid as in the case of home equity.Furthermore, the individuals who employ the system in accordance withthe present invention, may also accelerate or decelerate the conversionperiod at any time during that period to allocate their asset vehiclestowards desired targeted benefits.

Moreover, the personal retirement benefits program is specificallyconfigured so that individuals can purchase the benefits they need viathe Internet, without necessarily having to deal with the multitude ofcomplex insurance and investment products that attempt to provide suchbenefits. Thus in accordance with another embodiment, the individualretirement system of the present invention allows a customer to purchasea benefit program that comprises a plurality of different componentsreferred to as benefit vehicles, such as for example, lifetime income,survivor income, caregiver benefits, legacy income benefits, lump sumlegacy benefits, and long term care benefits.

Thus, in accordance with one embodiment of the invention, eachindividual may set up a benefit program, referred to as a benefitaccount, that has one or many benefit vehicle components. The systemthen employs an actuarial valuation component or module to evaluate eachof the benefit vehicles selected by the client. The client may alsoselect a plurality of benefit indices, such as level, cost of living(COLA) indices and market-linked, which over time may affect the valueof each of the benefit vehicles.

The system, furthermore, calculates and stores the information on themarket value of each of the benefits purchased or funded. This allowsthe system to offer a uniquely flexible arrangement such that a clientcan modify the amount of benefit allocated to some of the benefitvehicles based on, among other things, change in personal circumstances.

It is understood, as will be explained in more detail below, that inalternative embodiments the system described herein can employtelecommunication links other than the Internet. Moreover, in yet otherembodiments, the system of this invention can similarly be adopted toprovide advice and retirement benefits via a personal, non-computerizedsystem as well.

During the conversion period, portions of the assets are allocatedtoward a fraction of secure monetary benefits at selected intervalswithin the conversion period. At least one of the distributions orpayments to the client, corresponding to each of the benefit vehiclecomponents, are then made to the client during and after the conversionperiod, wherein the distribution during the conversion period is takenfrom both the asset vehicles and the benefit account, and thedistribution after the conversion period is taken from the benefitaccount.

In accordance with another embodiment of the invention a client'spersonal assets may be converted to asset vehicle accounts maintained bythe individual retirement income system. These asset vehicle accountsmay each comprise a choice of investment vehicles, such as money marketfunds, bond funds, index funds, market linked deposits and stocks, thatmay be selected by the client to fund the benefit program tailored tothe client's needs.

The conversion period and the benefits may be modified by the clients asthey encounter changes in their personal circumstances. The system isdesigned to allow changes to continue over a client's lifetime, as wellas the lifetime of the surviving spouse.

The above description sets forth rather broadly the more importantfeatures of the present invention in order that the detailed descriptionthereof that follows may be understood, and in order that the presentcontributions to the art may be better appreciated. Other objects andfeatures of the present invention will become apparent from thefollowing detailed description considered in conjunction with theaccompanying drawings. It is to be understood, however, that thedrawings are designed solely for the purposes of illustration and not asa definition of the limits of the invention, for which reference shouldbe made to the appended claims.

BRIEF DESCRIPTION OF THE DRAWINGS

In the drawings in which like reference characters denote similarelements throughout the several views:

FIG. 1 shows a block diagram of the individual retirement income systemof this invention, according to one embodiment;

FIG. 2 shows a more detailed view of the individual asset categories,asset vehicle accounts, investment vehicles, and benefit vehiclesavailable via the system of this invention, according to one embodiment;

FIG. 3 is a flow diagram that illustrates the steps that may beperformed during the conversion of assets into benefits via the systemof this invention, according to one embodiment;

FIG. 4 a shows a decision matrix, illustrating the decisions made byindividual users of this system, according to one embodiment of theinvention;

FIG. 4 b illustrates an exemplary display that allows a client tointeract with the system to obtain results in response to a series of“what if” scenarios based on the decision options illustrated in FIG. 4a;

FIGS. 5 a-5 c illustrate different simulation tables, each showing apossible outcome of the conversion process of this invention, based onthe decisions made in the decision matrix, according to one embodiment;

FIG. 6 illustrates a statistical view that is displayed to individualusers of the system based on the simulations performed as illustrated inFIG. 5, in order to depict the risks and rewards of specific decisionsmade by each user, according to one embodiment;

FIGS. 7 a and 7 b illustrate a flow diagram of the relevant steps usedby the retirement system of this invention, according to one embodimentof the invention.

FIG. 8 illustrates a flow diagram of the relevant steps used by theconversion process algorithm of this invention, according to oneembodiment of the invention.

DETAILED DESCRIPTION OF THE INVENTION

With initial reference to FIG. 1, an individual retirement income system100 is shown, according to one embodiment of the invention, forproviding an Internet based computerized method for converting certainassets into secure retirement benefits. Essentially, retirement system100 is configured to function as a retirement planning andimplementation tool for individuals who have accumulated personal assetsand are seeking secured or guaranteed lifetime benefits that they wantduring their retirement.

With continued reference to FIG. 1, retirement system 100 comprises aweb server 102, a database system 104, and a database interface 106.Briefly, the retirement system comprises multiple components 118-126,employed via a controller system 103 according to one embodiment of theinvention, for performing the valuations, simulations, conversions andother operations of the system of this invention, as will be describedin more detail below.

Furthermore, database system 104 is configured to store data used by theretirement system, such as market data, actuarial data, clientportfolios, etc. The web server typically accesses such data, viadatabase interface 106, wherein the data is in turn manipulated by theabove-mentioned components 118-126.

As mentioned above, retirement system 100 is configured to provideindividuals with secure retirement benefits, preferably, based on anasset conversion process. According to one embodiment of the invention,the interaction between such individuals or clients and the retirementsystem is facilitated via Internet connection 128, wherein clients 130a-130 c utilize Internet connection 128 to interact with system 100, andmore specifically interface component 122.

Clients 130 a-130 c each comprise an asset category component 132 a-132c, which corresponds to the accumulated assets they wish to convert.These assets may include various categories, such as qualified plans(e.g. IRA), home equity, annuity/life insurance products, personalequities and personal fixed income investments. One or a combination ofthese asset categories may have been converted to a corresponding assetvehicle component 134 a-134 c, which is the regulatory compliant vehiclefrom which the conversion process may be employed. Furthermore, assetvehicle components may further comprise a plurality of investmentvehicle components, 135 a-135-c, such as, money market funds, bondfunds, index funds, market linked deposits and stocks.

It is noted that, according to one embodiment of the invention, clients132 a-132 c can optionally transfer their assets to an asset vehicleaccount maintained and administered directly by the retirement system,or to a preferred provider asset vehicle account. Clients may alsoauthorize retirement system 100 to oversee and maintain client'sexternal asset vehicle accounts, such as 134, based on the client'sinstructions.

The retirement system is also coupled to asset vehicle accounts, such as138 corresponding to each client, which comprises a set of asset vehicleaccounts that can be monitored, maintained and administered by system100. The types of asset vehicle accounts that may be controlled,maintained and administered in accordance with one embodiment of theinvention comprise system asset vehicle account 148, referred to as GRCasset vehicle account, which is an asset vehicle account set up by theoperator of system 100. Asset vehicle account 148 is fully controlled,maintained and administered by system 100.

Another asset vehicle account is a preferred provider asset vehicleaccount 150. A preferred provider asset vehicle account is controlled bya provider suggested by system 100 and selected by a client. System 100may be authorized to execute transactions in account 150 on behalf of aclient. Another asset vehicle account is an external investment vehicleaccount 151. External investment vehicle 151 represents a subset ofasset vehicle accounts from a group of asset vehicles 134 wherein theclient has authorized the system to control.

It is noted that each asset vehicle account is defined by an investmentvehicle group, such as 141, which comprises various investment vehicles,such as money market funds, bond funds, index funds, market linkeddeposits, stocks and other types of investment vehicles. Thus, system100 allows each client the flexibility to determine which portions ofthe individual's asset categories should be invested in variousinvestment vehicles in order to accumulate for future funding of thedesired benefits. It is noted that in the present context the termfunding benefits or purchasing benefits have been used interchangeably.

In accordance with one embodiment of the invention, each client has thechoice to employ one or many of the asset vehicle accounts describedherein. To this end, system 100 maintains an asset vehicle accountcomponent 138 corresponding to each of the clients employing the system.The concepts behind the asset categories, asset vehicles and investmentvehicles introduced above is also illustrated in FIG. 2 as will bedescribed in more detail.

Retirement system 100 is further coupled to insurance component 136,which represents a plurality of actuarial information to allow system100 maintain an up-to-date actuarial data database. These actuarialinformation preferably correspond to the benefits offered by the systemof this invention. To this end insurance component 136 includesactuarial data corresponding to longevity statistics 142 for evaluatinglifetime income benefits. Insurance component 136 also includesactuarial data corresponding to mortality statistics 144 for evaluatinglife insurance benefits. Insurance component 136 also includes actuarialdata relating to morbidity statistics 146 for evaluating caregiver longterm care benefits. It is appreciated by those skilled in the art, thatfor each category of statistics described herein, there may beadditional statistical information concerning joint survivorship. Thisadditional information is relevant when client's desired benefitsinclude joint survivorship type arrangements.

FIG. 1 also illustrates a benefit account component 140, correspondingto each of the clients such as 132. Thus, in accordance with oneembodiment of the invention, system 100 offers a personalized benefitaccount, such as 140, to each of the clients based on, among otherthings, client's asset categories, investment selections and desiredbenefits. Each benefit account 140 comprises a plurality of benefitcomponents referred to as benefit vehicles. For example, in accordancewith one embodiment of the invention, a benefit account is defined as acombination of one or many benefit vehicles, such as pension benefit152, survivor benefit 154, caregiver (income) benefit 156, legacy(income) benefit 158, legacy (lump sum) benefit 160 and long term carebenefit 162.

It is noted that in accordance with various embodiments of the presentinvention, for each benefit account the benefit vehicles may be providedby a plurality of different means. For example, all or some of thebenefit vehicles may be supported by a benefit funding vehicle 317,which comprises a plurality of different components. For example,benefit funding vehicle 317 includes reinsurance agreement component318, investment contract 319, insurance products 330 and secondaryguarantee agreement 321.

Thus, an employer may set up the benefit accounts for eachclient/employee, and use the funds from the investment vehiclesdesignated by the client, to provide the benefit vehicles in eachbenefit account. These funds from the investment vehicles may beprovided via investment contracts 319 purchased by the employerproviding the benefit account. Typically, such funds are reinsured insecondary markets via reinsurance agreements 318.

In other embodiments, for example, all or some of the insurance vehiclesmay be provided by purchasing existing insurance products 330. In otherembodiments, a benefit account can be directly underwritten by aninsurance company based on the desired benefits.

Secondary guarantee agreement 321 provides an added security to aclient, albeit at a premium to guarantee the minimum level of benefit ata future date, even when client's assets are invested in equity typeinvestment vehicles, such as stock or index funds.

As will be explained in more detail below each benefit vehicle in abenefit account can be separately valued based on the actuarial dataemployed by system 100. The value of the benefit account will thencorrespond to the sum of values corresponding to each of the benefitvehicles. This feature allows for a unique flexibility in reevaluatingthe benefits provided by a benefit account and changing the amount ofeach benefit based on change in circumstances.

These benefit accounts in turn provide benefits to clients 130 a-130 cin the form of benefit distributions, satisfying their retirementobjectives. Thus, according to one embodiment of the invention, clients130 a-130 c can access retirement system 100 in order to easily andefficiently plan and secure their retirement.

In the embodiments where the clients' asset is converted to an assetvehicle account, a client may identify tax-qualified assets and convertthem into an individual retirement account (IRA) asset vehicle. Ofcourse, it is understood that the system of this invention can beconfigured to operate without regard to tax consequences as well.

Once the client has identified the desired asset vehicle accounts andcorresponding investment vehicles, he or she then accesses the interfacecomponent of web server 102, via Internet connection 128. Interfacecomponent 122 provides the necessary interface elements for userinteraction between the client and the retirement system. For example,interface component may comprise web pages, Java scripts, logon andpassword protection, etc. Also, interface component 122 is configured toquery the client with a plurality of benefits questions, as will bedescribed below. The benefit questions correspond to decisions made bythe client that help determine the retirement benefits the clientdesires as well as the client's health, risk tolerance, survivor needs,etc. Collectively, these decisions determine the benefit account desiredby the client. Furthermore, the system provides the client with a choiceof conversion periods during which client's assets can be allocated tofully fund the various benefits that he or she selects. Interfacecomponent may also provide clients with on-line access to retirementcounselors who may be available to answer client's specific questions.This feature may be in the form of on-line text or video communication,in accordance with one embodiment of the invention.

During the interactive process between the client and the system, othercomponents of system 100 are employed as well. These components mayassist the individual with the selection of a retirement benefit accountby portraying the risks and/or simulating statistical outcomes.Illustratively, actuarial valuation component 118 is employed todetermine the value of various benefit vehicles as selected to beincluded in a client's benefit account. Actuarial valuation component118 employs the statistical information on mortality, morbidity, andlongevity as provided by component 136 in order to price the retirementbenefits that will be offered to the client.

System 100 also includes a simulation process component 120 ,which isemployed to generate a statistical analysis based on a series ofsimulations of a sample retirement conversion plan so that the clientwill have an idea of the risks and benefits of the benefit account he orshe is designing.

System 100 also includes a conversion process execution component 124,which is employed to commence an actual conversion process. As will beexplained in more detail below, the system of this invention isconfigured to take funds from asset vehicle accounts and allocate themtowards desired benefits over a conversion period as specified by aclient. This conversion period allows the client to maintain liquidityas well as participate in the potentially high return of the stockmarket or other investment vehicle, for example, by not immediately‘locking’ all the assets into a particular benefit account. Rather, theassets are gradually converted to a retirement benefit account over aperiod of time on a gradual basis. It is the client's decision, based onhis or her risk tolerance, to determine the length of the conversionperiod and the amount of funds to keep in higher risk investments.

Reporting and payment process component 126 is employed to process thepayments to the client both during the conversion period and after theconversion period. Component 126 also updates the client on theperformance of his or her investment vehicles and benefit account aswell as the performance of the markets, rate of inflation, interestrates, among other things, so that the client can modify his or herinvestment vehicles and benefit account with an informed state of mind.The reporting process component is also configured to provide tax andregulatory reporting to the appropriate agencies as needed.

System 100 also includes a valuation of asset vehicle account component121, which is employed to determine the market value of various assetvehicle accounts for each client that are tracked and may be controlled,and/or maintained and administered by system 100. This valuationprovides information to the client, for example, to determine the amountof funds available to purchase various benefits.

System 100 also includes a valuation of benefit vehicles component 123,which are purchased or funded for the client. Component 123 is employedto evaluate the market value of various benefit vehicles that form theclient's benefit account. As will be explained in more detail below,system 100 employs this valuation of benefit vehicles, to allow theclient the flexibility of changing the benefits allocated to eachbenefit vehicle based on client's change of circumstances and desiresover time.

Database system 104, as described above, is configured to store datathat is in turn accessed and manipulated by the individual components ofsystem 100. Specifically, market data database 108 stores statisticalmarket information as well as actual market information, which is usedby simulation components 120 and conversion process component 124 toprovide statistically accurate simulations and correctly pricedexecution of the conversion process. For example, a benefit provided bya benefit vehicle, such as a pension benefit, may be valued based on thecurrent interest rates as stated by the market data database. Also,during the conversion process, sufficient information may be offered tothe client based on past performance or the current economicalenvironment of the market as reported by market data database so as toallow the client to make more informed decisions.

Portfolio database 112 stores information and data regarding the assetvehicle accounts of each of the plurality of clients. This informationis used when calculating the remaining asset value that has yet to beconverted as well as the amount of money available that can provideincome support to the client on an annualized basis. According to oneembodiment of the invention, the client must continuously update theportfolio database, including the asset vehicle account data, so thatthe database information remains current. This is particularly necessarywhere the client is personally managing the assets and the system has nomethod for calculating up-to-date asset vehicle account balances.

Benefits database 113 stores data relating to the client and benefitsselected by the client. For example, database 113 stores information,such as market value, concerning the benefits acquired by the client,which are purchased or funded via the system. This information is storedevery time valuation of benefit component 123 calculates the marketvalue of the various benefit vehicles that form a client's benefitaccount.

As mentioned earlier, a clients' needs and benefits may change over timeand as such the system may update database 113 by allowing the client tointeract with the system via the interface component so as to modify hisor her benefit choices. When purchasing benefits via benefit vehiclesand distributing these benefits, the retirement system of this inventioninteracts with database 113 to access the client's information in orderto act accordingly. For example, if the client increases his or herannual income needs, the system may respond by purchasing for example, alarger pension benefit and/or deducting more funds from the client'sasset vehicle accounts. In reevaluating the funds necessary to purchaseadditional benefits, the system employs, among other things, thebenefits database.

Personal parameter database 110 is configured to store each client'sinformation necessary to purchase or fund benefits that are selected orlater modified by the client. This information may include client's ageand health status, a desired conversion period specified by the client,the asset accounts and investment vehicles that the client hasauthorized for the system to employ towards funding the desiredbenefits, the benefit indices that a client would like to employ whenobtaining any one of the benefits, information on survivors and themanaged income range, referred to as collar, for certain benefits chosenby the client, which is a percentage spread up or down from a desiredbenefit within which client is willing to accept, as will be explainedin more detail in an exemplary embodiment in reference with FIG. 4.

Actuarial database 114 is used together with market data database toenable system 100, and specifically actuarial component 118 to calculatethe actuarial information necessary to compute the value of the benefitsthat are provided through the benefit vehicles that form the benefitaccount of a client. For example, the value of a pension or survivorbenefit may be based on the client's (and spouse's) mortality data asretrieved from the actuarial database. The value of a long term carebenefit, on the other hand may be based, among other things, on themorbidity data as retrieved from the actuarial database.

Regulation database 116 stores information relating to all regulationsthat govern the purchase, valuation and distribution of benefitscorresponding to each of the benefit vehicles. This information mayinclude federal and local government regulations that may affect thevaluation of various benefits selected by the client. It may alsoinclude regulations governing tax consequences for using or selling aparticular asset. In addition, the regulation database provides the datanecessary for regulatory reporting.

With reference to FIG. 2, an exemplary illustration of the various typesof asset categories, asset vehicle accounts, investment vehicles, andbenefits provided by benefit vehicles of a benefit account that can beprovided by the system of this invention is shown, according to oneembodiment of the invention.

Asset categories, such as asset categories 200-208, correspond to thevarious categories of assets that an individual or client hasaccumulated in the past or expected to accumulate in the future. Asshown in FIG. 2, such asset categories may include (1) qualified planscategory 200, corresponding to tax or retirement qualified assets of theclient, (2) home equity category 202, corresponding to the asset valueof the client's residence or other real property, (3) annuity/lifeinsurance category 204, (4) personal equities category 206, and (5)personal fixed income category 208.

Typically, when an individual retires, he or she may utilize one or moreof the above mentioned asset categories, for example, (1) to purchaselifetime income via an annuity, (2) to purchase a long term careagreement, or (3) to purchase a life insurance policy that leaves alegacy to the client's heirs. It is usually the case, however, thatpersonal needs and objectives change over time, whereas the client mayrealize, for example, that extra income payments are needed for aspouse, or that leaving a legacy is no longer desirable. Unfortunately,after locking in to various insurance products, it may be too late ortoo costly to alter one's retirement plans at this point.

In addition, the personal investments of a client may be performing wellat retirement and the client may be conflicted between the choice ofcontinuing to benefit from returns on equity investments, which maylater increase retirement benefits and legacy amounts, or ‘locking’ intoa secure, but potentially less rewarding, retirement plan that offers astable low risk result.

The system of this invention provides a solution, by first providing abenefit account that comprises a plurality of various benefits that canbe flexibly adjusted by the client, while at the same time reducing riskby gradually converting assets into secure benefits. It is noted that aclient may also choose a plurality of conversion periods for each of thebenefits required. Thus, the recurring conversion process is facilitatedin a manner that enables the individual or client to select desiredbenefits, offering the ability to modify or adjust those benefits asneeds change. Indeed, the system encourages client participation andmodification on a recurring basis, as the circumstances of a clientchanges. However it is noted that for some of the benefits the systemmay require proof of insurability whenever a change or modification inthe benefit account is required.

In contrast, insurance products offered by the prior art typicallyoperate via one-time purchases, where the distributions or benefitsprovided by those purchases cannot be changed as needs change. Also,once the client has made his or her purchase with such prior artinsurance products, there is usually no incentive for the provider tofollow up with the client since the sale has already been executed.Clients need a retirement benefit account 228, such as one offered bythis system that revolves around satisfying their continuously changingbenefit needs. The benefit account, such as 228 as mentioned above,satisfies clients' needs for flexibility and choice of benefits.

It is noted that the benefit account, such as 228, acquired by eachclient remains flexible even when the entire client's investmentvehicles have been mapped to various benefits after a conversionprocess. Thus, during any time that a benefit account is maintained fora client, it is possible to change the benefits acquired within thataccount. However, it is appreciated by those skilled in the art thatbecause of regulatory and actuarial limitations, there may be thresholdlimits beyond which a benefit cannot be modified.

The conversion process involves the gradual transfer over a conversionperiod, of assets from an asset vehicle account into a benefit accountwith various allocated benefits provided via benefit vehicles. As such,according to one embodiment of the invention, the retirement systememploys the asset vehicles of each client in order to more easilyfacilitate the transfer of one asset to another, such as with assetvehicles accounts 224 and 226. Of course, the client may maintain his orher control of the asset vehicle, such as with asset vehicle account222, and simply sell or transfer assets based on the informationprovided by the retirement system.

Some examples of asset vehicle account include individual retirementaccounts (IRA), personal investment accounts, reverse mortgage accounts,etc., as will be explained in more detail in reference with FIG. 2.Examples of investment vehicles include (1) stocks, (2) money marketfunds, (3) bond funds, (4) index funds, and (5) market linked deposits.

The objective of the retirement system of this invention is to providethe client with his or her desired personalized benefits. The systempurchases specific benefits with the various investment vehicles asspecified by the client during the conversion process. Such benefitsinclude, (1) pension benefit 210, (2) survivor benefit 212, (3)caregiver income benefit 214, (4) legacy income benefit 216, (5) legacylump sum benefit 218, and (6) long term care (LTC) benefit 220. Thus,clients approach the system of this invention with a plurality of assetcategories, wherein the system converts those asset categories intoliquid or tax appropriate asset vehicle accounts that include variousinvestment vehicles. Thereafter, the investment vehicles are convertedinto a benefit account with benefits over a predetermined conversionperiod. This allows the individual to participate in higher yieldinginvestments as well as modify the previously selected benefits duringand after the conversion period.

It is noted that the system also allows the client to employ variousbenefit indices, such as level, COLA and market linked as is known tothose skilled in the art, in purchasing or funding the desired benefitsthat are available via the benefit vehicles.

Accordingly, with reference to FIG. 3, a flow diagram 300 is shown,illustrating via stages 302-336, the overall flow of the retirementsystem of this invention as well as the underlying process of convertingassets into secure retirement benefits, according to one embodiment ofthe invention.

Initially, at stage 302, the system gathers data on the assets andincome sources of a client and stores that information in portfoliodatabase 112 (FIG. 1). The data is first used by the system to evaluatethe characteristics of the assets that the individual currently owns, aswell as income sources, in order to determine the client's financialsituation. For example, the asset data is reviewed to determine the risklevel of owned assets, as well as current yield offered by such assetsand their level of liquidity. At stage 302 the system also gathers dataabout various investment vehicles that a client holds within variousasset vehicle accounts. Also evaluated at this stage, based on thegathered assets, are tax treatment, to verify which of the client'sassets are eligible for tax free conversions within the retirementsystem. The client may also provide sources of income to enable thesystem to compute any shortcoming between current income and theclient's income objective.

At step 304 the system queries the client concerning the personal dataincluding age, health and family status, so as to complete the client'sprofile and store that information in personal parameter database 110(FIG. 1). At this stage, the system may provide product education to theclient including the advantages of establishing a benefit account withits various benefit components that can be flexibly adjusted over time.The system also provides information relating to possible advantages ofemploying a conversion period for acquiring desired benefits so as toallow client's investment vehicles remain invested in the market asdesired by the client. The system also develops the client's riskprofile, such as the client's tolerance for market risk, inflation riskand long term care risk.

At step 306 the system allows the client to specify the various benefitsthat the client desires based on the client's needs. Preferably, thesystem goes to this step, after the client has obtained information andeducation about various benefits that a client may need during theretirement period. For each desired benefit, client also specifies, ifknown, the amount of the benefit desired. The information gathered instep 306 is then stored in benefit database 113 (FIG. 1).

The system at steps 304 and 306 directs the client through aninteractive process, via interface component 122 (FIG. 1) for example,wherein the system aims to educate the client as to what they may wantin a retirement program. Ultimately, the client completes theinteractive process by providing the system with personal data,retirement objectives, annual income needs, as well as other necessaryinformation.

It is noted that system 100 is employed to provide a benefit account foreach client that has various benefit vehicles based on client's targetbenefits corresponding to each category of benefit. For example, afterreceiving information about various benefits and types of availablebenefit indices corresponding to each benefit, a client may determinethat there is a need for a certain amount of lifetime pension benefits,survivor pension benefits, caregiver monthly benefits in the event of asickness, legacy income benefits payable to children or grandchildrenfor a certain period of time, legacy lump sum payment to beneficiaries,and long term care payments in the event of a need for long term care.

At steps 308 the client decides what asset vehicles accounts andcorresponding investment vehicles to employ as discussed above. Theinformation obtained in step 308 is then stored in portfolio database112 as explained before. At step 314 the system allows the client toselect the benefit index for the retirement investments. A selection ofbenefit indices may include level, COLA, and market linked, as iscommonly understood to those skilled in the art.

Once the above-mentioned steps are executed, the system goes to step 310to conduct an actuarial valuation for each of the benefits selected bythe client. The system employs actuarial evaluation component 118(FIG. 1) to accomplish the task of benefit valuation for each of thebenefits desired by the client. The system employs the actuarial datastored in database 114 and updated via insurance component 136. Thesystem also employs regulation database 116 in calculating the value ofeach of the benefits desired by the client, as explained before inreference with FIG. 1.

At this stage, the client may decide to set up a benefit account basedon the valuations of various benefits that were selected by the client.Thus, the system may go to step 322 to allow the client to indicate thedecision to allocate investments toward the entire amount of desiredbenefits at a current valuation rate as computed at step 310. The systemthen goes to step 320 to execute the allocation of insurance fundingvehicles 318 (FIG. 1) to multiple benefits as desired.

Therefore, at step 320, the system allocates the client's authorizedinvestment vehicles to purchase each of the benefit vehicles provided bythe system. Thus, the client ends up with a benefit account that hasvarious benefits each of which have been evaluated by the system basedon the information stored in the system's database.

If however, after step 310, a client decides to obtain the desiredbenefits over a specific period of time referred to as the conversionperiod, the system provides additional information to the client toenable more informed decisions. As stated before, a client may wish toparticipate in the returns from his/her investment vehicles beforelocking into a benefit account all at once.

It is noted, as mentioned above, that the system of this invention,according to one embodiment, is configured to simplify for the clientthe often-complex aspects of purchasing insurance benefits. In fact, inorder to achieve all or most of the objectives of the client, thissystem may allocate many benefits over an extended period of time, oftenrecalculating actuarial valuations. The system is configured to handlesuch activity by providing to the client a view of a retirement benefitaccount that as a whole can provide many benefits, including income,long term care, legacy, etc. The client is also offered the ability togradually convert his or her assets to retirement benefits over apredetermined conversion period, rather than at once in one lump sum.This enables the client to modify the previously selected benefits aswell as maintain significant positions in potentially higher yieldinginvestment vehicles.

Furthermore, advantageously, the client may instruct the system tomaintain a predetermined proportion of assets in various investmentvehicles. For example, the client may decide that 50% of the value ofthe assets should be invested in equity investment vehicles, such asstocks, and the other 50% of the value of the assets should be investedin bond funds. Thus, the system recalculates the value of the investmentvehicles so as to maintain the desired proportion of assets, every timethat it allocates funds towards the purchase of benefits.

It is noted, however, that since some of the assets of the client arebeing kept in the stock market or other potentially volatile investmentvehicles, there is no guarantee that the retirement objectives initiallyselected by the client will be achieved. For example, the client maylose a significant portion of money during a stock market correction andmay thereafter not have sufficient funds to purchase the remainingretirement benefits that are needed to supply all of the desiredbenefits. In response to this risk factor, the system is configured toprovide a simulation of the expected outcomes and the chances of theclient achieving the desired outcome over a desired conversion period.

Thus, at stage 312, the system employs simulation process component 120(FIG. 1) to simulate various scenarios of investment and allocation tovarious benefit vehicles during various conversion periods. The resultsof each one of these scenarios is then provided to the client.

The process and algorithm behind this simulation will be discussed inmore detail with reference to FIG. 5. Briefly, the system retrievesstatistical data estimating the likely market performance and interestrate levels for a future conversion period. Then, based on theinvestment vehicles employed by the client and other client profileinformation, the system calculates a plurality of scenarios of what mayhappen with the client's investment vehicles and desired benefits overthe specified hypothetical conversion period. Statistics are offered tothe client, detailing his or her chances of achieving the desiredobjective. For example, the system may inform a client that based on aparticular scenario there is a certain percentage of likelihood that theclient can achieve 100% of its desired benefits, and that there is acertain percentage of likelihood that the client can achieve more than100% of its desired benefits or less than 100% of its desired benefits,as described in more detail in reference with FIG. 6.

The system then goes to stage 316, after the user is satisfied with thesimulation and other statistical charts. Thus, based on the informationprovided to the client as the result of the simulations performed by thesystem, a client determines the desired target benefits for each of thebenefit vehicles offered by the system and a desired conversion periodwithin which the client's benefit account is to be funded.

During the conversion process the system periodically transfers assetsfrom the client's investment vehicles for use to obtain one or moreinsurance benefits that over time will accumulate to a target benefit.Accordingly, at every interval of the conversion process, for exampleonce a year, an additional portion of the client's investment vehicle isallocated towards one or more insurance benefits. It is noted that aclient may specify a target benefit with a percentage spread (collar)below and above the target benefit. For instance, a client who isinterested to receive a specified target income payment during theconversion period may specify a 10% collar, meaning that benefitpayments that are 10% below or above the target benefit are acceptable.

Thus, at step 322, for the situation where a conversion period isemployed, the system determines the amount of the client's investmentsto allocate towards benefits at valuation rates during the beginning ofeach interval during the conversion period. According to one embodiment,the allocation amount towards obtaining benefits represents a portion ofbenefits proportionate to the time remaining in the conversion period.For example, if a conversion period of ten years is selected, then 10% (1/10^(th)) of the benefits are purchased for the first year, and1/9^(th) of the remaining benefits for the next year, and so on.Similarly, if a fifteen-year conversion period is selected, then a1/15^(th) portion of the benefits is purchased for the first year, andso on. However, as will be described below, any portion of the client'sassets can be allocated towards various benefits during each interval.

Each time that it is necessary to evaluate a purchase for a desiredbenefit, the system employs the valuation of benefits purchasedcomponent to determine the value of the benefits purchased to date so asto calculate the amount of remaining benefits required to purchase. Thesystem also employs valuation of asset vehicle component 121 todetermine the amount of assets remaining to purchase the desiredbenefits. Also, the client may use market data to decide how and in whatfashion to structure the remaining allocation of investments towardsobtaining additional benefits. For example, as will be explained in moredetail below, a client at any time during the conversion period, after asatisfactory growth in the assets may determine that the entire assetshould be used to purchase a benefit that is satisfactorily higher thanthe original target benefit. Also, a client who experiences adversemarket results in his investment vehicles during the conversion periodmay employ a stop/loss indication arrangement, to lock in the remainingassets and prevent further depreciation of his or her assets, when thevalue of the investment vehicles have decreased to below a predeterminedstop/loss threshold value.

At step 320, once the amount of investments to be allocated towardsvarious benefits is determined, the system secures the benefits byallocating the insurance funding vehicle 317 (FIG. 1) to multiplebenefits in benefit account 140 (FIG. 1). In one example, the systeminstructs an insurance company to provide an insurance productassociated with a benefit that is provided by the system. At this point,the insurance company generates all the documentation for delivery tothe client. The operation of this exemplary arrangement is described inmore detail in reference with FIGS. 7 a and 7 b.

At steps 326 and 328, the client returns to the system on a regularbasis during and after the conversion period and modifies his or herbenefits and objectives if necessary. The system then proceeds with arevaluation and modifies the remaining portion of the conversion processas needed. For example, at step 326 the client may provide newinformation relating to health and family status, which may require areassessment of the types of benefits that the client has previouslypurchased.

Thus, the client may increase one of the benefits, for example desiredpension payments and decrease another benefit, for example survivorpension benefits. The system at step 328 performs an actuarial valuationcorresponding to the changes required. The system looks at the marketvalue of the purchased benefits, at the actuarial data and at theinterest rate to determine the value of the benefit that is beingdecreased in one benefit vehicle and also to determine the value of thebenefit that can be purchased in exchange in another benefit vehicle.This reevaluation can occur during the conversion period or after theconversion period. If it occurs during the conversion period, the systemneeds to readjust the remaining purchases of the benefits based on thechanges made by the client. As mentioned above, this feature of thesystem provides for a remarkable flexible benefit account, whereinindividual benefits in the account can be adjusted, additional benefitscan be purchased or completely exchanged for other benefits, the amountof payments to purchase a benefit can be adjusted based on marketconditions, while allowing the client to choose appropriate benefitindices for each benefit vehicle in the benefit account. Stage 332illustrates that the process of updating benefits and revaluation of theconversion process is repeated on a continuous basis.

At step 334, once the conversion process is complete, the client entersthe secure retirement stage, where all designated investment vehicleshave been converted to benefit vehicles. Notably, as described above, itis the decision of the client as to the length of the conversion processand when to ‘lock in’ to secure products. Once assets are converted tothe secured retirement stage, however, according to one embodiment ofthe invention, the client can still modify the various benefits asexplained above. Finally, at step 336 the system provides any reportingthat is necessary.

With reference to FIGS. 4 a and 4 b, the actual decisions available tothe client, according to one embodiment of the invention, are shown on adecision matrix table 400. According to one embodiment, these decisionscan be responded to at various intervals, illustrated in FIG. 4 a asintervals A-G, wherein G is the final interval or status when a finalchoice for all decisions must be selected in each round. It isunderstood, of course, that the system of this invention can be employedwith more or less decisions. Also, there may be default responses to oneor more of the decisions, referred to in the drawings as “def.”notation, so that client's are not required to provide input for everydecision. According to one embodiment, a unique set of decisions,referred to in the drawings as “dec.” notation, are provided for eachclient depending on his or her circumstance, profile, or investmentneeds, etc.

As described above, the retirement system determines the retirementobjectives and desired benefits of the client via a plurality ofqueries. According to one embodiment of the invention, as shown in FIG.4 a, these queries comprise several types of decisions that the clientmay respond. As mentioned above, and as shown in FIG. 4 a, defaultresponses (def.) can be provided for clients who do not have a responseor are otherwise not capable of responding to one or more of thedecisions.

Briefly, conversion period decision 402, requires the client to decidethe length of the conversion period for which the investment vehiclesare to be converted into retirement benefits. A client that is morecomfortable with risk may choose a longer conversion period in order toparticipate in the market or to provide a longer period of time tomodify the selected benefits. Also, depending on the benefits orrequired income chosen by the client a different conversion period maybe more appropriate. Furthermore, a client may set a differentconversion period for each one of the benefits desired.

Asset decision 404 corresponds to the decision as to what type of assetvehicle accounts and investment vehicles for each asset vehicle accountwill be maintained during the conversion period. First, the client mustdecide if the retirement system will manage the asset vehicle accountsor whether he or she will manage them personally, etc. Second, theparticular investment vehicle where the assets will be invested must bechosen. And third, the percentage of the total asset in each investmentvehicle is chosen. For example, as mentioned before, a client may decidethat a certain percentage of the value of his assets should bemaintained in equity investement, such as stocks and a certainpercentage of the value of his assets should be maintained in fixedincome vehicles, such as money market funds. The system then maintainsthe same percentage of the value of the assets, in each investmentvehicle, every time that a portion of these investment vehicles areallocated towards a purchase of a desired benefit.

Collar decision 406 is the percentage spread below or above a targetbenefit from which the client's income can fluctuate during theconversion period. Typically, the higher the spread the more likely thatthe client's final retirement objective will be achieved. For example,during a bad stock market year the client's investments may not haveappreciated enough to supplement the client's income. If the clientdecided on a 90% collar, then the system will distribute a reduced 90%income for that year, saving the remainder to be invested for futureyears. Similarly, if the stock market performs well for a given year,the client may limit his income to a 110% collar, so that any extraasset appreciation will continue to derive potential benefit from themarket.

Benefit index 408 provides the client with the type of benefit indicesdesired for each of the benefits selected by the client. Thus eachbenefit vehicle may be tied to a particular benefit index such as a COLAplan, a level plan and a market linked plan as is known to those skilledin the art.

Stop/Loss indication 409 provides the client with the ability toaccelerate the entire conversion process at any time when the marketvalue of the investment vehicles has reached a predefined high or lowlevel. Thus, a client can specify to accelerate the entire conversionwhen the market has gone satisfactorily high, or when the market valueof the investment vehicles has gone so low that may jeopardize theamount of benefits the client can eventually purchase. It is noted thatin one embodiment of the invention, the stop/loss indication 409 can beset to the collar limits set by decision 406.

Pension decision 410 corresponds to the selection of pension paymentsduring the client's lifetime. Survivor decision 411 corresponds to theselection of benefits that are needed for one's spouse. Typically, thisdecision will determine whether the survivor of two individualsparticipating in the retirement plan of this invention will receive thesame income as when both were alive or rather a reduced income.Illustratively, a client may decide that income payments of $1,000 permonth are needed, for example. Yet, if one spouse passes away, thenincome payments of only $700 per month are needed for that remainingspouse. The system of this invention can be configured to handle theconversion process differently, and/or modify the benefit accountaccordingly, depending on the needs of both spouses as well as thesurvivor spouse.

Caregiver decision 412 and long term care agreement decision 414 querythe client whether he or she wishes to have a guaranteed carereimbursements arrangement, etc. where the corresponding benefit vehicleprovides payments for such care support if needed at a later date. Ifselected, the system may then allocate or fund a long term care benefitor other related benefit vehicle within the client's benefit account.

Similarly, legacy income decision 416 and legacy lump sum decision 418query the client whether he or she wishes to have a guaranteed legacyprovided to his or her beneficiaries in the form of a lump sum or incomepayments. Here too, if selected, a corresponding insurance benefit maybe allocated within the client's benefit account.

It is understood, according to another embodiment of the invention, thatthere may be more or less choices/decisions provided to the client. Forexample, the client may be queried about his or her risk tolerance sothat information relating to various conversion periods can be providedto the client.

Thus, FIG. 4 b illustrates an exemplary client interface wherein thedecisions described in FIG. 4 a can be provided to the system in theform of a series of “what if” scenarios. Therefore, a client can modifyany of the decisions stated before and see the amount of benefits,referred to as target benefits, that will be available if the clientestablishes a benefit account wherein the client's entire investmentwere to be allocated towards the purchase of benefits immediately. Theclient also can see the results of a simulation to determine theprobability distribution for the amount of benefits that may beavailable at the end of a desired conversion period.

In the example illustrated in FIG. 4 b, based on the decisioninformation provided by the client, a pension benefit of $8113, asurvivor benefit of $5436, a caregiver benefit of $13792 will beavailable if the client allocates the entire funds in the assignedinvestment vehicles toward the purchase of the desired benefits.

At this point, the client can also find out the probability of successthat these target benefits will be achieved at the end of the 15 yearperiod, by clicking over a button 440 that instructs the system toillustrate the probability of success results. For example, the systemin response to clicking button 440 may provide a separate screenillustrating that there is a 94.4% chance that 50% of the targetbenefits will be achieved, that there is a 85.9% chance that 75% of thetarget benefits will be achieved, that there is a 76.7% chance that 90%of the target will be achieved, that there is a 70.9% chance that 100%of the target will be achieved and there is a 54.9% chance that 125% ofthe target benefits will be achieved. As will be explained in moredetail in reference with FIG. 6, the probability of success results maybe illustrated in the form of probability charts. Furthermore, fordifferent asset vehicles selected by the client, a different set ofprobability results may be provided.

With reference to FIG. 5 a, the algorithm used to process thesimulation, as described above, with respect to one of the benefitsmentioned above, i.e. pension and survivor benefit, is shown as ascenario simulation table 500. It is noted that table 500 alsoillustrates an exemplary real life scenario of the conversion process inaccordance with one embodiment of the present invention. It is notedthat this conversion process is only an example employed by system 100to obtain pension benefits over the conversion period, and is describedherein to explain some of the principles of the present invention.

A brief explanation of the financial basis underlying the retirementbenefit offered by the system of this invention may be helpful at thispoint in understanding the operation of the simulation algorithm, aswell as the actual execution of the conversion process.

In the example of simulation table 500, as shown in table 502, aprospective client, having an initial asset value of $100,000,approaches the system in order to create a secure retirement benefit Inthis example, the client may need retirement income for himself, a 70year old male, as well as his spouse, a 65 year old female, who are bothin good health. In addition, the client may subsequently desire otherbenefits, such a long term care agreements or legacy payments.

Initially, the client provides his profile to the system and responds tothe supplied decisions, as described above. Here, the client selected(1) a conversion period of fifteen years; (2) an IRA investment vehicle,which contains his initial $100,000 asset value; (3) a collar of90%-110% , (4) survivorship payments of 100% ; (5) a level benefitindex; and (6) no stop/loss feature. In response the system calculatesas of the current date a target income payment of $8655 per year for thedesired benefits specified by the client. It is understood that thisprofile is only one example of the many benefits and decision responsesavailable to users of this system.

Once the client has made his selection, the system performs one or moresimulations, such as the simulation shown in simulation table 500, inorder to illustrate to the client the risks of his selection as well asthe statistical outcomes of his selection. After the simulation, theclient may once again modify, his decision responses until asatisfactory selection is made. Of course, it is understood, that thesimulation incorporates statistical information, since the futureperformance of the stock market and interest rates cannot be predicatedin advance to a certainty.

Accordingly, simulation table 500 is configured, according to oneembodiment of the invention, to illustrate the statistical performanceof an IRA account being converted to the secure retirement benefits ofthis system via a user-defined conversion period of 15 years. Notably,the conversion process for other investment vehicles, such as assetsfrom a reverse mortgage, may be employed differently depending on taxconsequences as well as the structure of withdrawing funds from theasset vehicle accounts.

The algorithm of simulation table 500 is best illustrated via thenumeric values of columns 504-512. These include (1) conversion yearcolumn 504, which displays incrementally each year of the selectedconversion period; (2) stock market return column 506, which displaysthe hypothetical market performance for each year of the conversionperiod; (3) current interest rate column 508, which displays theinterest rate (10 year treasury) for each year of the conversion period;(4) total IRA and benefit vehicle (in this example, pension andsurvivor) beginning of year (BOY) value column 510, which displays thetotal market value of both the investment vehicle (in this example, IRAaccount) and benefit accounts at the beginning of each year of theconversion period; (5)target payment column 512, which displays theamount of benefit that can be purchased if the entire market value ofthe IRA and benefit account is used to accelerate the conversion periodimmediately; (6) collared payment 514, which displays the amount paid tothe client as income based on the selected collar, for each year of theconversion period; (7) IRA beginning of year (BOY) market value column516, which displays the market value of assets in the IRA account at thebeginning of each year of the conversion period; (8) transfer paymentcolumn 518, which displays the amount allocated from the IRA accounttowards the benefit account for each year of the conversion period; (9)withdraw payment 520, which displays the amount withdrawn from the IRAaccount to supplement the remaining income not provided by the benefitaccount for each year of the conversion period; (10) IRA end of year(EOY) market value column 522, which displays the total value of assetsin the IRA account at the end of each year of the conversion period;(11) benefit account beginning of year (BOY) market value column 524,which displays the total market value of benefit vehicles in the benefitaccount at the beginning of each year of the conversion period; (12)benefit account new purchased benefit column 526, which display theamount of new benefits purchased in the benefit account for each year ofthe conversion period; (13) benefit account cumulative purchased benefitcolumn 528, which displays the cumulative amount of benefits purchasedin the benefit account for each year of the conversion period; (14)benefit account end of year (EOY) value column 530, which displays themarket value of benefits in the benefit account at the end of each yearof the conversion period; and (15) actual total payment column 532,which displays the actual income payments provided to the client foreach year of the conversion period.

As described above, the simulation provided by this invention, such assimulation table 500, is only based on a statistical estimate of thefuture market performance as well as other unknown elements, such as thehealth of the client. These statistical figures, according to oneembodiment of the invention, are provided via mortality tables as wellas Monte Carlo statistical analysis method, etc. Thus the abovesimulation is performed a plurality of times, wherein the averageperformance of all the simulations is displayed to the user in the formof the probability charts or probability tables. This embodiment will bedescribed below, with reference to FIG. 6.

Thus, with continued reference to FIG. 5 a, the algorithm of thisinvention is employed as follows, according to one embodiment.Initially, at the first year of the conversion process, the client has$100,000 in his IRA account (column 516) and $0 in his benefit account(column 524).

For each year of the conversion period, the assets in the IRA accountare gradually converted to the benefit account. As stated above, thisprolongs the client's exposure to the stock market and provides addedliquidity that would not be available if the client directly bought suchbenefits without such a conversion period.

Illustratively, in the first year $100,000 is available in the IRAaccount, which can purchase joint and survivor income, paying $8655 peryear. As a result the system obtains a 1/15^(th) portion of $8655 or apension and survivor benefit of $577 (column 526). Notably, a portion of$100,000 is allocated towards the benefit account in order to obtain thepension and survivor of $577, which in this example is shown as $6,667(column 518). In the second year of the conversion period, the marketvalue of the IRA account and benefit account is $103,354, which canobtain a benefit paying $9143 per year. It is noted, that the IRAaccount has a higher market value than the first year due toappreciation in value from a positive stock market performance in thatyear.

At this point, the conversion calculation process is more detailed sincethe algorithm must take into account the benefit amount previouslypurchased in the benefit account. Therefore a 1/14^(th) portion of($9143-$577) is obtained, shown as $612 (column 526). Similarly, in thethird year, a 1/13^(th) portion of ($9867-$1189) is obtained, etc.

With reference to the percent of target box 534, it is shown that theinitial income target of $8655 per year has been exceeded by 22%,wherein the conversion period benefitted from the stock market such thatincome payments of $10,540 have now been locked in. Thus, by utilizingthe 15 year conversion period in this simulation the client achieved hisobjective of liquidity during the conversion and benefitted from thehigher return of the stock market. It is understood, of course, thatFIG. 5 a is only one simulation and lower or higher returns are possibleas well. For example, with reference to FIG. 5 b the client did notachieve his target pension and survivor and with reference to FIG. 5 cthe client achieved approximately 100% of his objective.

The actual formulas used to calculate the simulation for the conversionprocess in the above-mentioned embodiment are shown in the followingTable I.

TABLE I conversion year column 504 present year of conversion process(referred to as ‘t’); t = 0 for year conversion began. Stock marketreturn column 506 stock market performance for present year Currentinterest rate column 508 interest rate for present year (10 yeartreasury) Combined market value of IRA for initial value (t = 0):Deposit Amount account and benefit account at the for t > 0: (EOY marketvalue of IRA account; col. 522) + beginning of the year col 510 (EOYmarket value of benefit account; col. 11) @ t − 1 (prev. conversionyear) Available target payment benefit if entire col 510 is allocatedtowards the benefit; column 512 (col 510)/(Value of benefit based onactuarial valuation i.e. the purchase price) wherein${purchaseprice} = {\sum\limits_{j = 0}^{w - {{Min}{({x,y})}} - 1}{v_{j}^{J = 1} \cdot \left( {{jP}_{x + t} + {jP}_{y + t} - {{jP}_{x + t} \cdot {jPy}} + t} \right)}}$wherein w is an age at which no one is expected to survive; i_(j) is theinterest rate for a j duration spot rate; v = (1 + i_(j))⁻¹ and jP_(x+1) is the probability of some one aged (x = t) to survive j yearsCollared payment 514 Max [90% * (Market value at col. 510/Value ofBenefit @ t = 0 of col. 512), Min [110% * (Market value at col.510/Value of Benefit @ t = 0 of col 512), (value of col. 512 @ t]] IRABOY market value column 516 t = 0: Deposit Amount t > 0: (market valueat EOY col 522) @ t − 1 Transfer payment column 518, Min [(market valueat BOY col 516), or (Value of Benefit at (col 526) @ t] Withdraw payment520 Min ((collared value of col 514) − (cumulative benefit purchased ofcol 528), or (market value of IRA BOY of col 516) − (transfer payment ofcol 518) * (1 + r(t))] where r is interest rate IRA EOY value column 522(market value of IRA BOY of col 516) − (transfer payment of col 518) *(1 + r(t)) − (withdraw amount of col 520) Benefit account BOY valuecolumn t = 0: 0 524 t > 0: (market value of benefit account EOY col 530)@ t − 1 Benefit account newly purchased t = 0: (target payment of col512)/(n-t) where n is the benefit col 526 number of years in aconversion period t > 0: (target payment of col 512) − (cumulativebenefit purchased of col 528) @ t − 1/(n-t) Benefit account cumulativebenefit t = 0: (newly purchased benefit of col 526) purchased col 528t > 0: ((cumulative benefit purchased of col 528) @ t − 1) + (newlypurchased benefit of col 526) Benefit account EOY value column (PurchasePrice of cumulative benefit purchased of col 530 528) Actual totalpayment column 532 (Withdrawal from IRA account col 520) + (cumulativebenefit purchased col 528)

With reference to FIG. 8, initially at step 800 the client identifiesasset vehicle accounts and investment vehicles, such as an IRA accountto be invested during the conversion process, as shown in column 516(FIG. 5 a) for the first year of the conversion period. In the exampleillustrated in FIG. 5 a the initial investment is valued at $100,000.From this initial investment, according to one embodiment of theinvention, the client requests for a retirement benefit in the form ofincome payments. With this system, rather than directly allocating abenefit that can provide such income payments, the client is able toretain his or her investments and its associated liquidity during aconversion period where the assets are gradually converted intoguaranteed benefits.

At step 802, the system of this invention initiates the conversionprocess by allocating a portion of the assets from the investmentvehicle towards the purchase of a benefit such as a pension. It isunderstood, as described above, that the funds in the investmentvehicles may be mapped to a plurality of benefits that together form abenefit account that provides, among other things, guaranteed income.Column 518 (FIG. 5 a) illustrates the amount of assets ($6,667)transferred from the IRA (asset vehicle) to the pension and survivor ofthe benefit account. The amount transferred for this year of theconversion period provides an annual income benefit in the amount of$577 (column 526). It is noted, that according to another embodiment ofthe invention, a larger or smaller portion of the IRA can be transferredfor any given year. The factors that determine the amount and rate oftransfer include: (1) the length of the conversion period; (2) thedesired transfer rate of the client; (3) the conditions of the market(i.e. transfer higher amounts in years where purchase of pension incomebenefits are least expensive, and vice versa), etc.

At step 804, the predetermined benefit is distributed to the client. Atthis point, the purchased pension only provides $577 of income, far lessthan the desired $8655 as selected by the client. Rather, the systemaccumulates income benefits during the conversion process until thepension grows large enough to provide the client with all of his or herneeds. Accordingly, $8078 (column 520) is withdrawn from the IRA, inconjunction with the $577 (column 526) of pension benefits to providethe client with $8655 of income (column 532) (See FIG. 5 a). It isnoted, as described above, that a collar may be selected to increase ordecrease such income payments during the conversion based on theperformance of the stock market, etc. (see column 514).

At step 806, the next year of the conversion period is initiated,wherein the client is optionally provided with the ability to modify hisor her objectives or needs. For example, the client may increase ordecrease his or benefit needs. Also, the client may accelerate theconversion process or alternatively lengthen it. In response to anychanges, the system of this invention performs additional calculationsand once again performs the operations of the conversion process bytransferring a portion of the client's assets to a retirement benefitsand distributing a portion of each to supply the client with income.

At step 808, the conversion process is completed or the clientaccelerates the process, wherein all assets are locked into a secureguaranteed retirement benefit vehicles, such as pension.

According to yet another embodiment of the invention, the conversionprocess can be employed with a reverse mortgage asset vehicle, ratherthan an IRA or in combination with an IRA account. A reverse mortgageenables a client who owns a home to tap to an immediate lump sum ofcash, or an ongoing cash based on the value of the home. Any amountsused are paid back to the bank at the time the home is eventually sold,which may be after the life of the client. Thus, in accordance withanother embodiment of the invention a reverse mortgage investmentvehicle may be employed so as all or portions of loans from the bank canbe allocated towards benefits desired by the client.

As described above, the scenario simulation tables shown in FIGS. 5 a-5c are illustrations of many possible scenarios generated by theretirement system to provide statistical feedback to the client as tothe risks and probabilities of success of his or her retirementobjectives. According to one embodiment of the invention, the systemcalculates a plurality of such simulations to provide statisticalfeedback to the client of the possible outcomes of the conversionprocess.

With reference to FIG. 6, a sample simulation display 600 is shownillustrating, according to one embodiment of the invention, theprobability distribution results of all such plurality of simulationscenarios generated for a particular client simulation. Thus, forexample, when a client interacts with the system via the systeminterface illustrated in FIG. 4 b, the results of the simulations arecalculated as illustrated in FIGS. 5 a-5 c and displayed to client inthe form of FIG. 6 in response to the client requesting the probabilityresults.

Specifically, simulation display 600 illustrates one example of adisplay that the system may provide. Thus, display 600 includes an assetcategory portion 620 that provides the information concerning variousasset categories owned by the client. In this example, the display showsa qualified retirement account 622, home equity 624, a fixed deferredannuity 626 and the total value of these assets.

Display 600 also includes an asset vehicle account information portion630 that illustrates the asset vehicle accounts that are employed by thesystem to set up the client's benefit account. Thus, the display showsan IRA account 632, a reverse mortgage account 634 and a variableannuity account 636. The total value of these asset vehicle accounts isalso provided at space 638.

The collar portion 640 illustrates the percentage spread below and overa desired benefit target that a client is willing to accept. Pensionportion 642 illustrates the type of benefit index that a client haschosen as discussed above in reference with FIG. 1.

Display 600 also illustrates exemplary charts 602-608 that provideinformation on the statistical chances of achieving the desiredbenefits. These statistical results are shown for a variety ofinvestment vehicle conversion algorithms, such as conversion from anIRA, reverse mortgage, or variable annuity asset vehicle. Similarly,distribution results for each of the above-mentioned asset vehicles areprovided as well. Thus, each chart illustrates a statistical resultindicating the probability that a client could achieve 100% of thedesired benefit after the conversion period, or the probability that theclient could end up achieving less or more than the desired benefit. Itis understood, of course, that the simulation chart of FIG. 6 can beconfigured to illustrate such statistical analysis to the client withalternative illustrations as well.

Chart 608 illustrates the distribution of probability of success that aclient can achieve the desired benefits after aggregating all theinvestment vehicles towards mapping various benefits that form thebenefit account of the client.

Finally display 600 illustrates a hypothetical benefit account set up bythe client with various allocation of benefits derived from acorresponding asset vehicle account. Thus section 650 of the displayillustrates a desired pension and survivor, a survivor benefit, acaregiver and a legacy income payment of 20 years from the period theclient and spouse were alive. The benefits illustrated in section 650are funded by asset vehicle account 632. Similarly, benefits displayedin section 652 are funded by asset vehicle account 634, and the benefitsdisplayed in section 654 are funded by asset vehicle account 636. Thetotal sum of benefits in the client's hypothetical benefit account isillustrated in section 656 of the display.

According to one embodiment of this invention, this conversion processis executed by the retirement system according to continuous updatedinstructions provided by the individual. In addition, the retirementsystem may be configured to help the individual make an informeddecision by evaluating his or her retirement objectives as well asproviding simulations and other interactive elements.

FIGS. 7 a and 7 b illustrate a process flow in accordance with oneembodiment of the present invention. The exemplary process illustratedin these figures relate to an arrangement of the system, where clientemploys qualified plans asset category, and the purchases of benefitsare funded by insurance contracts and the system provides for theclients' convenience, an on-line retirement counselor. Thus, at step 710a prospective customer connects to retirement system 100 of FIG. 1 andbegins to look for retirement options. At decision step 712 if thecustomer decides not to search for retirement option, the system thengoes to step 713 and provides the customer with a review of otheroptions. Otherwise, the system goes to step 714 and allows the customerto review the contents of the system's public area display. At decisionstep 716, if the customer decides to join, the system goes to step 718to query the customer profile.

At step 722, the system provides a complete tour of all the benefitsavailable to the customer. At step 720 the customer may employ aretirement calculator that provides budget and other information.

Whenever the customer requires additional information, the system mayallow the customer to work with a retirement counselor, on-line, at step724. In the alternative, at step 726, customer may also have access toproduct education.

At step 728 the customer may complete the retirement modeling asindicated in reference with FIG. 4 b, wherein a plurality of conversionperiods and decisions are tested and a satisfactory retirement programis selected. The system then goes to step 730 and if the customer isready to purchase it then goes to step 732 to provide the customer withan illustration, required by regulation, which discloses informationabout all of the products funding the benefits. At step 734, thecustomer electronically submits the request to purchase the benefits.

As illustrated in FIG. 7 b, at step 736 the system receives thecustomer's request and after performing quality assurance and qualitychecks and legal compliance at step 738, the system determines whether arollover of investment vehicles is required. If so, the system goes tostep 742 to acquire the customer's investment vehicle and deposit thefunds to a new investment vehicle, such as the system IRA that ismaintained directly by the system.

The system then goes to step 746 to begin the allocation of assetvehicle funds towards purchase of various desired benefits. Thereafter,an entity that maintains the customer's benefit account, for example, aninsurance company, at step 748 receives the benefit allocation requestand processes the benefit purchase at step 750.

The insurance company, at step 752 confirms the transaction with system100 and at step 754 various contracts, policies and other benefitvehicles are generated. At step 756, the documents corresponding to thebenefit vehicles are shipped to the system, whereas at step 758, thesystem bundles the documents along with additional information for thecustomer. At step 760, the system sends the documents to the customer,wherein at step 762, the customer signs and returns them to the system.At step 764 the processing is completed.

It is noted that the customer at any time can visit the system andmodify the benefits based on change in circumstances as explainedbefore.

Thus, while there have been shown and described and pointed outfundamental novel features of the invention as applied to alternativeembodiments thereof, it will be understood that various omissions andsubstitutions and changes in the form and details of the disclosedinvention may be made by those skilled in the art without departing fromthe spirit of the invention. It is the intention, therefore, to belimited only as indicated by the scope of the claims appended hereto. Itis to be understood that the drawings are not necessarily drawn toscale, but that they are merely conceptual in nature.

1-39. (canceled)
 40. A computer implemented method for convertingpersonal assets into a guaranteed individual retirement benefit, themethod comprising: receiving instructions, at a computer, to associatepersonal assets of an individual with an asset account, receivinginstructions, at said computer, that identify at least one guaranteedtarget benefit vehicle for said individual, calculating, by executinginstruction; at said computer, a value of the personal assets associatedwith the asset account, allocating, by executing instructions at saidcomputer, a portion of the value to be converted to the at least oneguaranteed target benefit vehicle during successive intervals of aconversion period, sending instructions generated by said computer thatcause a portion of the at least one guaranteed target benefit vehiclehaving a market value of said allocated portion of the value of thepersonal assets to be purchased with funds derived from the assetaccount during said successive intervals of the conversion period,calculating, by executing instructions at said computer upon receipt ofan inquiry, the current value of the personal assets associated with thepersonal asset account, the individual market value of the portions ofthe at least one guaranteed target benefit vehicle purchased, and thevalue of the future payments guaranteed by the portions of the at leastone guaranteed target benefit vehicle purchased, and sending thecalculated current value of the personal assets associated with thepersonal asset account, the calculated individual market value of theportions of the at least one guaranteed target benefit vehiclepurchased, and the calculated value of the future payments guaranteed bythe portions of the at least one guaranteed target benefit vehiclepurchased from the computer for review by or on behalf of theindividual.
 41. The method of claim 40 further comprising calculatingfor each future interval of said conversion period an estimated futuremarket value of the personal assets associated with the personal assetaccount, the estimated future individual market value of the portion ofthe at least one guaranteed target benefit vehicle to be purchased, andthe value of the future payment guaranteed by the portions of the atleast one guaranteed target benefit vehicle to be purchased.
 42. Themethod of claim 40 further comprising receiving instructions, at saidcomputer, that define the conversion period.
 43. The method of claim 40,wherein said instructions that identify said at least one guaranteedtarget benefit vehicle are generated on the basis of informationreceived in response to benefit questions regarding the individual'shealth, risk tolerance and needs.
 44. The method of claim 40 furthercomprising calculating, by executing instructions at said computer, aseries of simulated values at intervals of simulated conversion periodsof a value of the personal assets estimated to remain associated withthe personal asset account, an estimated individual market value ofportions of the at least one guaranteed target benefit vehicle purchasedestimated to be purchased, and a value of the future payments guaranteedby portions of the at least one guaranteed target benefit vehicleestimated to be purchased.
 45. A computer implemented method forcontrolling over a network the conversion of personal assets into aguaranteed individual retirement benefit, the method comprising: sendinginstructions over a network to a computer that associate personal assetsof an individual with an asset account, sending instructions over saidnetwork to said computer that identify at least one guaranteed targetbenefit vehicle for said individual, authorizing the purchase, duringsuccessive intervals of a conversion period, of a portion of said atleast one guaranteed target benefit vehicle having a value equivalent toa value of a portion of said personal assets associated with the assetaccount calculated by said computer, and receiving over said network acurrent value, calculated by said computer, of the personal assetsassociated with the personal asset account, an individual market value,calculated by said computer, of the portions of the at least oneguaranteed target benefit vehicle purchased based on said authorizing,and a value of the future payments guaranteed by the portions,calculated by said computer, of the at least one guaranteed targetbenefit vehicle purchased based on said authorizing.
 46. The method ofclaim 45, further including a step of receiving over said network foreach future interval of said conversion period an estimated futuremarket value, calculated by said computer, of the personal assetsassociated with the personal asset account, the estimated futureindividual market value, calculated by said computer, of the portion ofthe at least one guaranteed target benefit vehicle to be purchased inaccordance with said authorizing, and the value, calculated by saidcomputer, of the future payment guaranteed by the portions of the atleast one guaranteed target benefit vehicle to be purchased inaccordance with said authorizing.
 47. The method of claim 45, furtherincluding sending instructions over said network to said computer thatdefine the conversion period.
 48. The method of claim 45, wherein saidinstructions that identify said at least one guaranteed target benefitvehicle are generated on the basis of information received in responseto benefit questions regarding the individual's health, risk toleranceand needs.
 49. The method of claim 45 further comprising receiving fromsaid computer over said network a series of simulated values atintervals of simulated conversion periods, as calculated by saidcomputer, of a value of the personal assets estimated to remainassociated with the personal asset account, an estimated individualmarket value of portions of the at least one guaranteed target benefitvehicle purchased estimated to be purchased, and a value of the futurepayments guaranteed by portions of the at least one guaranteed targetbenefit vehicle estimated to be purchased.
 50. An integrated computersystem for converting personal assets into a guaranteed individualretirement benefit comprising: at least one remote client computercoupled to a network; a storage device that stores: i) data regardingpersonal assets of an individual associated with an asset accountreceived from said at least one remote client, and ii) data regarding atleast one guaranteed target benefit vehicle for said individual receivedfrom said at least one remote client; and at least one server computeroperatively coupled to a network to establish a data communications linkwith said at least one remote client computer coupled to said network,said server computer comprising: a component for calculating a value ofthe personal assets associated with the asset account, a component forallocating a portion of the value to be converted to the at least oneguaranteed target benefit vehicle during successive intervals of aconversion period, a component for causing a portion of the at least oneguaranteed target benefit vehicle having a market value of saidallocated portion of the value of the personal assets to be purchasedwith funds derived from the asset account during said successiveintervals of the conversion period, and a component for calculating andtransmitting to said at least one remote client computer upon receipt ofan inquiry from said remote client computer the current value of thepersonal assets associated with the personal asset account, theindividual market value of the portions of the at least one guaranteedtarget benefit vehicle purchased, and the value of the future paymentsguaranteed by the portions of the at least one guaranteed target benefitvehicle purchased.
 51. The system of claim 50 wherein said at least oneserver computer further comprises a component for calculating andtransmitting to said at least one remote client computer for each futureinterval of said conversion period an estimated future market value ofthe personal assets associated with the personal asset account, theestimated future individual market value of the portion of the at leastone guaranteed target benefit vehicle to be purchased, and the value ofthe future payment guaranteed by the portions of the at least oneguaranteed target benefit vehicle to be purchased.
 52. The system ofclaim 50 wherein said storage device further stores data that define theconversion period received from said at least one remote clientcomputer.
 53. The system of claim 50 wherein said data stored at saidstorage device is generated at said at least one client computer inresponse information input in response to benefit questions regardingthe individual's health, risk tolerance and needs.
 54. The system ofclaim 50 wherein said server computer further comprises a component forcalculating and transmitting to said at least one remote client computera series of simulated values at intervals of simulated conversionperiods of a value of the personal assets estimated to remain associatedwith the personal asset account, an estimated individual market value ofportions of the at least one guaranteed target benefit vehicle purchasedestimated to be purchased, and a value of the future payments guaranteedby portions of the at least one guaranteed target benefit vehicleestimated to be purchased.
 55. A computer implemented method forconverting personal assets into a guaranteed individual retirementbenefit, the method comprising: receiving instructions, at a computer,to associate personal assets of an individual with an asset account,receiving instructions, at said computer, that identify at least oneguaranteed target benefit vehicle for said individual, calculating, byexecuting instruction at said computer, a value of the personal assetsassociated with the asset account, allocating, by executing instructionsat said computer, a portion of the value to be converted to the at leastone guaranteed target benefit vehicle during successive intervals of aconversion period, sending instructions generated by said computer thatcause a portion of the at least one guaranteed target benefit vehiclehaving a market value of said allocated portion of the value of thepersonal assets to be purchased with funds derived from the assetaccount during said successive intervals of the conversion period,receiving data, at said computer, that indicate a change in at least oneof 1) the personal assets associated with the asset account, 2) the atleast one guaranteed target benefit vehicle, or 3) the conversionperiod, and reallocating, by executing instructions at said computer,the portion of the value of the personal assets associated with assetaccount to be converted to the at least one guaranteed target benefitvehicle during remaining successive intervals of the conversion period,wherein further sent instructions generated by said computer reflect thereallocated portion of the value of the personal assets to purchaseportions of the guaranteed target benefit vehicle.
 56. The method ofclaim 55 further comprising receiving instructions, at said computer, toaccelerate the purchase of the at least one guaranteed target benefitvehicle and sending instructions generated by said computer that cause aremainder of the at least one guaranteed target benefit to be purchased.57. The method of claim 55 wherein said reallocating is executed withthe goal of maintaining value of the portion of the at least oneguaranteed target benefit vehicle to be purchased remains within acollar of a target benefit amount.
 58. The method of claim 55 whereinthe data that indicate a change indicate a change in the value of thepersonal assets associated with the asset account.
 59. The method ofclaim 58, further comprising reallocating, by executing instructions atsaid computer, the personal assets to be associated with said assetaccount.
 60. A computer implemented method for controlling over anetwork the conversion of personal assets into a guaranteed individualretirement benefit, the method comprising: sending instructions over anetwork to a computer that associate personal assets of an individualwith an asset account, sending instructions over said network to saidcomputer that identify at least one guaranteed target benefit vehiclefor said individual, authorizing the purchase, during successiveintervals of a conversion period, of a portion of said at least oneguaranteed target benefit vehicle having a value equivalent to a valueof a portion of said personal assets associated with the asset accountcalculated by said computer, and sending data over said network to saidcomputer that indicate a change in at least one of 1) the personalassets associated with the asset account, 2) the at least one guaranteedtarget benefit vehicle, or 3) the conversion period, said data being thebasis for reallocating, by executing instructions at said computer, theportion of the value of the personal assets associated with assetaccount to be converted to the at least one guaranteed target benefitvehicle during remaining successive intervals of the conversion period,wherein further sent instructions generated by said computer reflect thereallocated portion of the value of the personal assets to purchaseportions of the guaranteed target benefit vehicle.
 61. The method ofclaim 60 further comprising sending instructions over said network tosaid computer to accelerate the purchase of said at least one guaranteedtarget benefit vehicle by authorizing a remainder of the at least oneguaranteed target benefit to be purchased.
 62. The method of claim 60wherein said reallocating is executed by said computer with the goal ofmaintaining value of the portion of the at least one guaranteed targetbenefit vehicle to be purchased remains within a collar of a targetbenefit amount.
 63. The method of claim 60 wherein the data thatindicate a change indicate a change in the value of the personal assetsassociated with the asset account.
 64. The method of claim 63, furthercomprising authorizing reallocation by said computer of the personalassets to be associated with said asset account.
 65. An integratedcomputer system for converting personal assets into a guaranteedindividual retirement benefit comprising: at least one remote clientcomputer coupled to a network; a storage device that stores: i) dataregarding personal assets of an individual associated with an assetaccount received from said at least one remote client, and ii) dataregarding at least one guaranteed target benefit vehicle for saidindividual received from said at least one remote client; and at leastone server computer operatively coupled to a network to establish a datacommunications link with said at least one remote client computercoupled to said network, said server computer comprising: a componentfor calculating a value of the personal assets associated with the assetaccount, a component for allocating a portion of the value to beconverted to the at least one guaranteed target benefit vehicle duringsuccessive intervals of a conversion period, a component for causing aportion of the at least one guaranteed target benefit vehicle having amarket value of said allocated portion of the value of the personalassets to be purchased with funds derived from the asset account duringsaid successive intervals of the conversion period, and a component forreceiving data from said at least one remote client that indicate achange in at least one of 1) the personal assets associated with theasset account, 2) the at least one guaranteed target benefit vehicle, or3) the conversion period, and for reallocating the portion of the valueof the personal assets associated with asset account to be converted tothe at least one guaranteed target benefit vehicle during remainingsuccessive intervals of the conversion period.
 66. The system of claim65 wherein said data that indicate a change indicate an order toaccelerate the purchase of the at least one guaranteed target benefitvehicle and wherein said component for causing a portion of the at leastone guaranteed target benefit vehicle to be purchased causes a remainderof the at least one guaranteed target benefit to be purchased.
 67. Thesystem of claim 65 wherein said reallocating is executed with the goalof maintaining value of the portion of the at least one guaranteedtarget benefit vehicle to be purchased remains within a collar of atarget benefit amount.
 68. The system of claim 65 wherein the data thatindicate a change indicate a change in the value of the personal assetsassociated with the asset account.
 69. The system of claim 68, whereinsaid component for reallocating reallocates the personal assets to beassociated with said asset account.
 70. A computer implemented methodfor converting personal assets into a guaranteed individual retirementbenefit, the method comprising: receiving instructions, at a computer,to associate personal assets of an individual with an asset account,receiving instructions, at said computer, that identify at least oneguaranteed target benefit vehicle for said individual, calculating, byexecuting instruction at said computer, a value of the personal assetsassociated with the asset account, allocating, by executing instructionsat said computer, a portion of the value to be converted to the at leastone guaranteed target benefit vehicle during successive intervals of aconversion period, sending instructions generated by said computer thatcause a portion of the at least one guaranteed target benefit vehiclehaving a market value of said allocated portion of the value of thepersonal assets to be purchased with funds derived from the assetaccount during said successive intervals of the conversion period,receiving instructions, at said computer, that identify potentialchanges in at least one of 1) the personal assets associated with theasset account, 2) the at least one guaranteed target benefit vehicle, or3) the conversion period, calculating expected values by executinginstructions at said computer based upon said instructions that identifypotential changes, the expected values including 1) the expected futurevalue of the personal assets associated with the personal asset accountat each future interval of the successive intervals of the conversionperiod, 2) the expected future individual market value of the portionsof the at least one guaranteed target benefit vehicle purchased at eachfuture interval of the successive intervals of the conversion period,and 3) the value of the future payments guaranteed by the portions ofthe at least one guaranteed target benefit vehicle purchased at eachfuture interval of the successive intervals of the conversion period,and sending the calculated values from the computer for review by or onbehalf of the individual.
 71. The method of claim 70 wherein theexpected values are calculated as a function of at least one of: (i)simulated market performance information, (ii) simulated interest rates,and (iii) simulated inflation rates.
 72. The method of claim 70 whereinthe expected future individual market value of the portions of the atleast one guaranteed target benefit vehicle purchased at each futureinterval of the successive intervals of the conversion period iscalculated by employing information related to morbidity of theindividual and information related to the projected longevity of theindividual.
 73. The method of claim 70 further comprising calculating aprobability of achieving complete purchase of the at least oneguaranteed target benefit vehicle during the conversion period.
 74. Themethod of claim 73 further comprising calculating probabilities ofachieving purchase of various portions of the at least one guaranteedtarget benefit vehicle during the conversion period.
 75. A computerimplemented method for controlling over a network the conversion ofpersonal assets into a guaranteed individual retirement benefit, themethod comprising: sending instructions over a network to a computerthat associate personal assets of an individual with an asset account,sending instructions over said network to said computer that identify atleast one guaranteed target benefit vehicle for said individual,authorizing the purchase, during successive intervals of a conversionperiod, of a portion of said at least one guaranteed target benefitvehicle having a value equivalent to a value of a portion of saidpersonal assets associated with the asset account calculated by saidcomputer, and sending instructions over said network to said computerthat identify potential changes in at least one of 1) the personalassets associated with the asset account, 2) the at least one guaranteedtarget benefit vehicle, or 3) the conversion period, receiving expectedvalues over said network from said computer, the expected valuesincluding 1) the expected future value of the personal assets associatedwith the personal asset account at each future interval of thesuccessive intervals of the conversion period, 2) the expected futureindividual market value of the portions of the at least one guaranteedtarget benefit vehicle purchased at each future interval of thesuccessive intervals of the conversion period, and 3) the value of thefuture payments guaranteed by the portions of the at least oneguaranteed target benefit vehicle purchased at each future interval ofthe successive intervals of the conversion period.
 76. The method ofclaim 75 wherein the expected values are calculated as a function of atleast one of: (i) simulated market performance information, (ii)simulated interest rates, and (iii) simulated inflation rates.
 77. Themethod of claim 75 wherein the expected future individual market valueof the portions of the at least one guaranteed target benefit vehiclepurchased at each future interval of the successive intervals of theconversion period is calculated at said computer by employinginformation related to morbidity of the individual and informationrelated to the projected longevity of the individual.
 78. The method ofclaim 75 further comprising receiving over said network from saidcomputer a probability of achieving complete purchase of the at leastone guaranteed target benefit vehicle during the conversion period. 79.The method of claim 78 further comprising calculating probabilities ofachieving purchase of various portions of the at least one guaranteedtarget benefit vehicle during the conversion period.
 80. An integratedcomputer system for converting personal assets into a guaranteedindividual retirement benefit comprising: at least one remote clientcomputer coupled to a network; a storage device that stores: i) dataregarding personal assets of an individual associated with an assetaccount received from said at least one remote client, and ii) dataregarding at least one guaranteed target benefit vehicle for saidindividual received from said at least one remote client; and at leastone server computer operatively coupled to a network to establish a datacommunications link with said at least one remote client computercoupled to said network, said server computer comprising: a componentfor calculating a value of the personal assets associated with the assetaccount, a component for allocating a portion of the value to beconverted to the at least one guaranteed target benefit vehicle duringsuccessive intervals of a conversion period, a component for causing aportion of the at least one guaranteed target benefit vehicle having amarket value of said allocated portion of the value of the personalassets to be purchased with funds derived from the asset account duringsaid successive intervals of the conversion period, and a component forcalculating expected values based upon instructions received from saidat least one client computer that identify potential changes, theexpected values including 1) the expected future value of the personalassets associated with the personal asset account at each futureinterval of the successive intervals of the conversion period, 2) theexpected future individual market value of the portions of the at leastone guaranteed target benefit vehicle purchased at each future intervalof the successive intervals of the conversion period, and 3) the valueof the future payments guaranteed by the portions of the at least oneguaranteed target benefit vehicle purchased at each future interval ofthe successive intervals of the conversion.
 81. The system of claim 80wherein the expected values are calculated as a function of at least oneof: (i) simulated market performance information, (ii) simulatedinterest rates, and (iii) simulated inflation rates.
 82. The system ofclaim 80 wherein the expected future individual market value of theportions of the at least one guaranteed target benefit vehicle purchasedat each future interval of the successive intervals of the conversionperiod is calculated by employing information related to morbidity ofthe individual and information related to the projected longevity of theindividual.
 83. The system of claim 80 wherein said component forcalculating expected values calculates a probability of achievingcomplete purchase of the at least one guaranteed target benefit vehicleduring the conversion period.
 84. The system of claim 83 wherein saidcomponent for calculating expected values calculates probabilities ofachieving purchase of various portions of the at least one guaranteedtarget benefit vehicle during the conversion period.